Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Change of legal entity
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.
Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.
The following question should be addressed when considering reasonable excuse
- Has the trader transferred from a partnership to a sole proprietor or vice versa?
Liability in these circumstances remains the same.